Founders Fund leads $5M purchase of Anvil governance tokens
Founders Fund led a $5 million purchase of Anvil’s ANVL governance tokens, joined by Pantera and others, giving buyers a role in protocol decisions.
Crypto Bulletin Newsroom 2 min read
Founders Fund led a $5 million purchase of Anvil’s ANVL governance tokens, joined by Pantera Capital, Theta Blockchain Ventures, Bullish and Protoscale Capital, according to CoinDesk’s report on the October 6 announcement. The buyers received governance rights in the Ethereum based collateral protocol, rather than equity in Anvil, the announcement said.
CoinDesk reported that Anvil told it the tokens came from the project’s existing treasury, not a new issuance. The purchase’s terms and valuation were not disclosed.
What can ANVL holders decide?
The tokens give holders a role in decisions about Anvil’s development, according to Anvil’s announcement, distributed by Chainwire and hosted by The Block. Founders Fund partner Joey Krug said the protocol uses verifiable digital asset collateral to secure commitments behind payments and credit.
CoinDesk reported that Anvil had 80 billion ANVL tokens in circulation, out of a total supply of 100 billion. It did not report how many tokens the investors bought or what share of the supply that represents.
How does Anvil use collateral?
Anvil is built on Ethereum and lets digital assets secure financial commitments, including payments and credit, CoinDesk reported. Its model can reserve assets to guarantee payment; if a commitment is not met, the assets can be claimed, according to the report.
That differs from a conventional DeFi loan, in which a borrower deposits collateral and borrows against it. CoinDesk reported that Anvil’s guarantee does not require the collateral provider to borrow money or pay interest simply to create the guarantee.
Anvil Research Labs also launched a software development kit intended to let businesses integrate the protocol without writing blockchain code, according to the announcement. Bullish was among the companies exploring its use, while Founders Fund, Pantera and the other buyers acquired ANVL to participate in protocol governance.